What Are The Safest Investments With Protection Against Inflation?

When the country’s economic performance seems to be a bit precarious, investors take notice. It leads to a population of investors that are much more risk averse than their predecessors. After some years of economic growth, things seem to be slowing down, and investors want to know where they can safely park their money to ride out any market rough patches. They are some of the best investments in the USA. Below are the top 5 safest investments to earn sizable returns while still avoiding high risk investments.


CDs, short for Certificates of Deposit, are one of the safest investments for beginners and experienced investors alike. Because of this, they do not provide the highest returns you will find. Current CD interest rates fall between the 1.10-1.15% interest mark. Despite this, they offer the safety of being FDIC insured and offer better interest than traditional savings accounts. If you want to earn a small return and do not need access to your money anytime soon, a CD could be the best investment option for you.

Fixed Annuities

Fixed annuities are contractual agreements between investors and insurance companies. You, the investor, agree to give a sum of cash to an insurance company. In return, they agree to provide you with a fixed return after a time. Much like a certificate of deposit, you do not have access to your money when it is tied up in a fixed annuity. However, because of the guaranteed returns, fixed annuities are one of the safest and smartest investments for all investors to consider.

Money Market Accounts

A money market account is another one of the top safest investments that few investors take advantage of. Much like a CD or fixed annuity investment, you will not have access to your cash while it is tied up in a money market account. Money market accounts are FDIC-insured, interest-bearing deposit accounts, similar to traditional bank accounts. Except, they produce higher returns and allow fewer, if any, withdrawals before the term ends. If current CD interest rates do not seem promising to you, consider investing in a money market account.


TIPS is the acronym for Treasury Inflation Protected Securities. Upon first glance, these investment options do not seem all that enticing. Interest rates can start as low as .35%. Similar to bank guarantee letters, the government backed inflation protections of this investment should make you have second thoughts. If inflation grows throughout the time you have your TIPS investments, the value of those investments then automatically rises alongside that inflation rate. Investors can choose to invest in TIPS individually, or within mutual fund investments. That is what makes this one of the best safe investments for beginners.

Municipal Bonds

Municipal Bonds are much like traditional U.S. Treasury Bonds with a good allocation definition. You, the investor, loan some money to your local municipal government. This money then funds local infrastructure projects or other high-cost policy plans. Then, you accrue tax free returns on these investments. This makes municipal bonds one of the best investments to save for retirement, particularly if you already have a traditional IRA account.

Safe investments make it possible for the average person to earn some passive income on their savings while keeping it tucked away safe and secure. But if you want to invest, you want to be sure you are going to earn a considerable return. Otherwise, it may not be worth it to tie up your money outside of your control. Consider the top safest investments mentioned above. These low risk investment opportunities make it possible to earn money without having to invest in the stock market, which is inherently incredibly risky. Check out the options mentioned above to decide on the best investment to help you start earning passive income now.

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